CVC closes European direct lending fund at €6.3bn

The firm’s third fund will focus on private equity-backed deals across Europe and utilise CVC’s wider network.

London-based lender CVC Credit has held a final close of its third European direct lending fund at €6.3 billion.

The vehicle, European Direct Lending Fund III, is significantly larger than its predecessor but will take on the same strategy of investing in private equity-backed transactions across Europe.

The firm said it will use its network of 13 offices across Europe to originate deals. This will include deals sourced through prior deals conducted by its private equity arm or live deals investigated by CVC PE.

As with many private debt vehicles today, the fund will have a focus on ESG and embedding environmental and social responsibility into its investment process.

The fund will be managed by co-head of private credit Andrew Davies and John Empson. Commenting on the fundraising, Empson said: “CVC Credit is incredibly focused on delivering attractive financing solutions for European financial sponsors, many of whom have been impacted by the pull back in bank lending. The strength and depth of the CVC platform enables us to act as a reliable long-term partner and we are excited by the opportunity.”

The fund has already completed a number of investments including IRCA, OPEN Health and Euro Techno Com.